AMSTERDAM (20 October 2016) – Prologis, Inc., the global leader in logistics real estate, today announced third quarter activity in Europe.
Operating Performance
Prologis Europe ended the third quarter with 96.1 percent occupancy, an increase of 50 basis points from the second quarter. The company signed new leasing agreements totalling 549,130 square metres in the third quarter, nearly twice the volume signed in the same period in 2015.
At quarter-end, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects of 16.6 million square metres in Europe.
“The initial shock of Brexit faded over the summer; customer sentiment remained positive with little to no impact on transactions,” said Ben Bannatyne, president, Prologis Europe. “Strong leasing activity contributed to record high occupancy across our European portfolio. We continue to see significant rental growth in the U.K., and increasingly across continental Europe – specifically Germany, the Netherlands and the Czech Republic.”
Markets with the strongest interest from customers in the third quarter were:
- the U.K., Germany, the Netherlands, and Sweden in Northern Europe
- Lyon, Le Havre, Valencia and Barcelona in Southern Europe
- Prague, Budapest and Bratislava in Central and Eastern Europe
Notable new leasing activity in the third quarter included:
- 22,300 square metres for 4PX, a Chinese e-commerce company, at Prologis Park Dunstable, UK
- 23,660 square metres for Logent, a third-party logistics provider, at Prologis Park Gothenburg, Sweden
- 20,000 square metres for Samada, a third-party logistics provider, at Prologis Sénart DC1 near Paris, France
Development Starts
Supply of Class-A distribution facilities remains low across all European markets. In the third quarter, Prologis Europe started 14 developments in the U.K., Germany, the Netherlands, France, Spain, Poland, Czech Republic and Slovakia. Totalling 291,000 square metres, 69 percent of the development space was build-to-suit and 31 percent was speculative.
Development starts included:
- 60,000 square metre build-to-suit for XPO Logistics at Trade Port North, Venlo, the Netherlands
- 23,530 square metres developed speculatively at Prologis Park Le Havre, France
- 21,400 square metres developed speculatively at Prologis Park Wrocław V, Poland
- 20,500 square metres for Mall.cz, an e-commerce distributor at Prologis Park Prague-Jirny, Czech Republic
“We continue to selectively develop in tighter markets with solid operating fundamentals,” Bannatyne said. “Total development activity continues to be buoyed by availability of capital and low vacancy levels, with e-commerce end users accounting for 44 percent of all build-to-suit starts.”
Acquisitions and Disposals
In the third quarter Prologis Europe acquired five land plots across Europe. These acquisitions were in line with Prologis’ strategy of investing carefully in global markets.
“Investor interest in logistics real estate continues to outpace core investment opportunities, which is directing capital into development,” Bannatyne said. “Cap rates remained stable over the third quarter.”
ABOUT PROLOGIS
Prologis, Inc. is the global leader in industrial real estate. As of September 30, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 670 million square feet (62 million square meters) in 21 countries. The company leases modern distribution facilities to more than 5,200 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact Prologis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading “Risk Factors.” Prologis undertakes no duty to update any forward-looking statements appearing in this document.
MEDIA CONTACTS
Marta Tęsiorowska
Vice President Marketing & Communications
Prologis Central & Eastern Europe
Direct: +48 22 218 36 56
Email: [email protected]&
Marta Zagożdżon
PR Director, ConTrust Communication
Direct: + 48 605 073 929
E-mail: [email protected]